Nigeria's three tiers of government shared a total of N10.45 trillion from the Federation Account Allocation Committee (FAAC) between January and May 2026, reflecting a rise in revenue. The federal government received N3.72 trillion, states got N3.56 trillion, and local governments received N2.51 trillion.
Revenue Pool Grows to N13.76 Trillion
The allocation was shared from a gross revenue of N13.76 trillion realised within the period, reflecting a 4.32 per cent increase from N13.19 trillion recorded in the corresponding period of 2025. According to FAAC data released by the National Bureau of Statistics, the distributable revenue was driven by improved value-added tax inflows, oil-related taxes, and intensified revenue collection efforts aimed at meeting a N40 trillion federation target.
Breakdown of Allocations
From the total allocation, the federal government received N3.72 trillion, state governments got N3.56 trillion, while local government councils received N2.51 trillion. Oil-producing states were allocated N673.17 billion as 13% derivation revenue from mineral earnings.
The analysis showed that allocations rose steadily over the period, increasing from N1.96 trillion in January 2026 to N2.30 trillion in May 2026. Month-on-month, disbursements declined by 3.37% in February to N1.89 trillion, before rebounding by 7.50% in March to N2.04 trillion. It further rose by 10.85% in April to N2.26 trillion and climbed 1.91% in May to N2.30 trillion.
Gross Revenue Fluctuations
Gross revenue for the period also fluctuated, rising from N2.59 trillion in January, dipping to N2.23 trillion in February, and increasing to N2.36 trillion in March, N3.18 trillion in April and N3.40 trillion in May.
Compared with 2025, January 2026 allocation rose by 15.09%, February by 12.87%, March by 28.86%, April by 34.35% and May by 38.55%, reflecting stronger revenue performance year-on-year.
Federal Government Remains Largest Beneficiary
The Federal Government remained the largest beneficiary of the allocation, receiving N160.71 billion more than states over the period, a margin of about 4.5%, while states received 41.8% more than local governments.
Debt Profile of States
Earlier, the NBS revealed that Nigeria's total external debt stock climbed to $51 billion (N74.43 trillion) in the fourth quarter of 2025. According to its latest public data report, Lagos State has emerged as Nigeria’s most indebted subnational government in terms of external borrowing. Among the 36 states and the Federal Capital Territory (FCT), Lagos recorded the highest external debt profile at $1.17 billion, far ahead of other states. It was followed by Kaduna State with $684.29 million and Edo State with $354.03 million.
